Chinese Economy: Reform or Die | David Woo

The teaching of the Chinese philosopher Mencius about the right of people to rebel against unjust government has kept Chinese rulers on their toes for more than 2000 years. The political legitimacy of the CCP depends on continued speedy convergence of China's standard of living to that of developed countries. While urbanization promises to unleash further improvement in labor productivity, the Chinese economy faces 3 growing constraints: limited scope to grow global market share, limited scope for further balance sheet expansion, increasingly limited ability to access foreign technologies. Under Xi Jinping China has moved to favor state control over private entrepreneurship. If China were to escape the middle income trap, he only way is to accelerate economic reform and deregulation to unleash the private sector. Does Xi's have what it takes? Can reform help US-China relations? It is reform or die. David Woo, a former top-ranked Wall Street global macro strategist, tells it as it is. You may not agree with everything he says but he will make you reassess everything you thought you knew.

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00:00 Introduction
00:46 Political legitimacy
02:51 Chinese economy under the CCP
04:45 China's middle income trap
06:40 Urbanization as growth engine
11:04 Housing bubble
12:37 The bottom line